Many Americans are on a financial pace to have to work until they are dead. According to the Employee Benefit Research Institute, the median amount workers nearing retirement age have saved is a mere $77,000 and the median salary for that age group is $61,000. What’s even worse is that 50% of the private sector population doesn’t even have a retirement plan! How did this happen?
First, many Americans believed that Social Security would be there in the end. Social Security is already paying out more than it is bringing in. Given that the first wave of Baby Boomers is starting to retire, this situation is only going to be worse. Social Security most likely won’t make it through the 40 million plus Boomers set to retire over the next decade, nor will it be there for future generations.
Second, many Americans believed that their company would provide a pension for their retirement. The reality is that only about 11% of the private sector is actually covered by a pension. The combination of company paid pensions and Social Security was supposed to provide the Baby Boomers with sufficient income through their golden years.
Unfortunately, most Americans failed to have an effective plan B. Continue reading “Work Until You’re Dead?!”